Sebi to revamp short-selling, securities lending rules
Sebi is reviewing short-selling and securities lending rules to improve liquidity and price discovery. The regulator is also planning reforms in clearing, broker compliance, custodial services and corporate bond market-making to deepen capital markets and reduce compliance costs.
The Securities and Exchange Board of India (Sebi) is reviewing the framework for short selling and securities lending and borrowing (SLB) to improve market liquidity and price discovery, chairman Tuhin Kanta Pandey said on Saturday.Short selling allows investors to sell borrowed shares, while SLB provides the mechanism for lending and borrowing securities.The review is part of the regulator’s broader effort to deepen the capital markets following demands from market participants, Pandey said at an event.Sebi will also address the need for parallel clearing in tender offers, share buybacks and offers for sale, which adds to costs.
